Recommendations for New Investors

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#1 Tue, Jun 21, 2011 - 12:24am
San Francisco, CA
Joined: Jun 20, 2011

Recommendations for New Investors

Thanks again TF for making this possible!

Rather than make specific recommendations, I think it is important to step back and offer a few observations and recommendations to new or soon to be PM junior investors.

1. Most of the juniors are Canadian or Australian listed companies and trade primarily on the exchanges in these countries.

I just stated the obvious, but what this means to you is that even though many of the companies are traded on the OTC in the US, the level of liquidity is usually much lower than the exchange in the home country. The spreads can be horrible and you may not be able to enter or exit a position without losing/paying plenty of $.

2. The solution of course is to trade on the Canadian or Australian exchanges.

This might entail changing brokers. I like Interactive Brokers (IB). The commissions are cheap and they have been very responsive to my questions. I am sure other readers can offer their recommendations for brokers.

3. One benefit in trading on the Canadian or Australian exchanges is the assets are denominated in Canadian or Australian dollars.

I feel that it is important to have most of my highly liquid holdings in other, stronger currencies. This is not to say they will not depreciate over time, but relative to the US $, they should have a slower rate of decent. As you may have noticed, both the Australian and Canadian dollars have done quite well this past year, appreciating against the US $, an added bonus on my investment returns.

4. Purchasing Australian or Canadian dollars for your account avoids paying interest to the brokerage firm.

Other readers, please chime in with your thoughts and recommendations. Thanks.


Edited by: SealRock on Nov 8, 2014 - 5:20am
Tue, Jun 21, 2011 - 4:31pm
Joined: Jun 14, 2011

thanks, I have IB,  I went

thanks, I have IB, I went into some gold miners just now, but on the AMEX, good tip about buying the currency,

got me TRX NGD GBG, they all showed a 5+% rise today, hope this continues

Tue, Jun 21, 2011 - 6:24pm
Timber Tim
Joined: Jun 17, 2011

British Brokers adding to uk hair loss

Thanks sealRock.I am that new junior investor with a bit of tongue in the cheek,as I write that.Winging it abit really.But learning more everyday.I was actually looking at IB today.There commision rate seems really good.I like the Idea of not having everything in Dollars,Pounds or euros.So I think I will be joining them and buying me some Juniors.It was hard enough finding a broker in the uk.The plateforms here feel like a trip back to windows 3.1.I'm not kidding.I am sure there is a high level of baldness among uk investor and its not natural hair loss.So your thoughts have been very much appreciated.Yours too zilverreiger.I bought NGD today, it was me that pushed it up.I shall be checking out GBG and TRX.Maybe I will be pushing them up tomorrow.Thanks.